Google's International Search Filters A Little Off?

A Google Groups webmaster is reporting that he is finding .co.nz (New Zealand) sites ranked highly in the Google Ireland (google.ie) search result. Strangely enough, that .co.nz site is not even hosted in New Zealand; it's hosted in the US.

Similarly, the webmaster reports that a few other sites are being ranked highly even though they are US-based servers. He suspects that there is a problem with geotargeting in addition to other issues (like duplicate content filters, which he's also encountering problems with).

This may be a problem, and Google rep JohnMu has reported it as an issue. Hopefully we'll see some resolution soon.